The maiden edition of the Citibusinessnews.com Breakfast Encounters was held at the La Palm Royal Beach Hotel in Accra today to deliberate on the impact of Brexit on Ghana.
The event brought together industry players in finance, economy, international affairs and all business related fields to drive thought provoking discussions and give in-depth analysis of pertinent issues that may affect Ghana due to the Brexit.
Impact on gold
Discussing the impact of Brexit on world commodity prices such as gold and oil, a senior lecturer at the University of Ghana, Dr. Lord Mensah stated that the demand for gold will go up.
According to him, investors will always prefer to invest in commodities that are relatively stable on the world market such as gold than to invest in shares in Europe after the Brexit.
“I think the demand for some commodities like gold will go up and I think that will impact our revenue from the commodity positively,” he said.
He was of the view that the development may positively affect revenues of African countries, including Ghana who rely on the proceeds of the commodity.
Dr. Mensah, however stated that the Brexit may cause a reduction of inflow of pounds to Ghana due to demand and supply of the currency.
“I foresee a reduction in the inflow of pounds to Ghana. What we must understand is that the pound also has a relationship with the dollar and so we may see some changes in how the cedi reacts to these currencies,” he warned.
World market to determine commodity prices
On his part, the Executive Director, European Business Organization (Ghana), Nico van Staalduinen was however of the view that the Brexit will not affect commodity prices substantially.
He explained that Britain does not hold monopoly over world commodity prices since the prices are normally determined by the world market.
“Well for me, I hold a different view. I don’t think Britain’s exit from the EU will necessarily affect commodity prices on the world market. These prices are determined by the world market and not the UK,” he stressed.
He maintained that the UK after leaving the EU has lost its momentum such that no other European country in the EU wants to leave.
Impact on remittances
Touching on how the Brexit will impact remittances to Ghana, Banking consultant and Head of the Osei Tutu II Centre for Executive Education and Research, Nana Otuo Acheampong, maintained that Brexit will not substantially affect the amount of funds remitted to Ghana since Ghanaians abroad mostly consider the exchange rate as a major factor.
He disclosed that recent interactions with some Ghanaians living in the UK indicated that the exchange rate regime in the country determines the level of remittances since it affects the value of the pound.
Also at the programme to talk about the impact of the Brexit on immigration was Senior Research Fellow at the Legon Centre for International Affairs and Diplomacy (LECIAD), Dr Vladimir Antwi-Danso
The programme was moderated by Head of Citi Business News desk at Citi Fm, Vivian Kai Lokko.
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By: Lawrence Segbefia/citibusinessnews.com/Ghana
Photos by Mawuli Tsikata